Department of Labor gives Americans more retirement options

(U.S. Department of Labor)
Published: Jul. 4, 2020 at 1:37 PM CDT
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TOPEKA, Kan. (WIBW) - The U.S. Department of Labor announced the proposal of a new exemption giving Americans more options for retirement.

The U.S. Department of Labor says it is proposing a new exemption for investment advice fiduciaries that will benefit Americans by delivering more choices for financial planning with clear standards upheld by investment advice providers. It says the proposal will be published in the Federal Register for notice and comment.

The Department says the exemption would offer a new prohibited transaction class exemption for investment advice fiduciaries based on an existing policy already adopted. It explains that the new rule would use Impartial Conduct Standards which are a best standard, reasonable compensation standard and required to not make materially misleading statements.

According to the Department, the Securities and Exchange Commission issued a package of advice standards that align with the Department’s proposed exemption. The Department says it hopes to strengthen retirement security for Americans with the SEC.

“Today’s proposed exemption would give Americans more choices for investment advice arrangements while protecting the retirement savings of American workers,” U.S. Secretary of Labor Eugene Scalia said. “The exemption would add to the tools individuals need to make the right decisions for their financial future.”

“The proposed exemption would be broadly available to investment advice fiduciaries who adhere to a best interest standard and plainly inform retirement investors that they are acting as fiduciaries when making investment recommendations,” said Acting Assistant Secretary of Labor for the Employee Benefits Security Administration Jeanne Klinefelter Wilson. “The proposed exemption would authorize a wide range of investment advice models and relationships, consistent with the fundamental goal of ensuring that workers and retirees receive investment advice that is in their best interest.”

The Department says its Employee Benefits Security Administration developed the exemption and its mission is to assure the security of the retirement, health and other workplace-related benefits of American workers.

For more information on the proposed exemption visit the Department of Labor website.

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